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Technical Indicators — What’s Useful & What Isn’t | Lux Algo

Technical Indicators — What’s Useful & What Isn’t | Lux Algo

Oct 29, 2020
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Many technical indicators are available to traders, but one question remains: "which are useful and which aren't"? In this post we try to answer this question.

Supertrend Channel

Supertrend Channel

May 6, 2022
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The classical Supertrend indicator is displayed as a trailing stop, showing a lower monotonic extremity during up-trends and an upper monotonic extremity during down-trends. Today we propose a channel indicator based on the Supertrend trailing stop using trailing maximas/minimas.

Bart Pattern Detector

Bart Pattern Detector

Apr 12, 2022
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As a sequel to our 'meme indicator' series... The Bart Pattern Detector identifies confirmed regular and inverted Bart patterns using edge detection.

Fibonacci Grid

Fibonacci Grid

Mar 28, 2022
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The following indicator returns multiple diagonal lines forming a grid. Each line has 45-degree and is set depending on Fibonacci ratios as well as the maximum and minimum price value over a certain lookback period.

Let's Talk About Repainting

Let's Talk About Repainting

Mar 24, 2022
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Technical indicators are characterized by processing historical data, in a causal real world and for the sake of our analysis, we would expect indicators historical outputs to remain the same right? Well, we will see that this is not always the case, and that certain indicators can change appearance.

Pivot Based Trailing Maxima & Minima

Pivot Based Trailing Maxima & Minima

Mar 14, 2022
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This indicator returns trailing maximums/minimums and their average resetting at the occurrence of a pivot point high/low, thus allowing the highlighting of past and current support and resistance levels.

SuperIchi

SuperIchi

Feb 28, 2022
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Using one indicator as the core for another one to improve certain aspects while offering an alternative user interaction can be very interesting in technical analysis .

Pivot Points High Low & Missed Reversal Levels

Pivot Points High Low & Missed Reversal Levels

Feb 17, 2022
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Pivot Points High/Low, sometimes referred to as "Bar Count Reversals" allows highlighting market prices local tops and bottoms. This method compares the price value at a certain index within a user-specified window length and tests whether it is the highest ( pivot high) or lowest ( pivot low).

McDonald's Pattern

McDonald's Pattern

Feb 3, 2022
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TradingView asked, we delivered. This script fits a cubic Bezier curve using tops/bottoms in order to approximate a McDonald's pattern, a popular meme pattern in the crypto trading community.

A Deep Dive Into The Relative Strength Index

A Deep Dive Into The Relative Strength Index

Jan 26, 2022
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Oscillators play an important role in technical analysis due to the amount of information they can return as well as their ability to lead price variations and are often used in conjunction with trend indicators. This post offers a deep dive into this classic oscillator, sharing observations as well as reviewing derived indicators.

Volume Footprint

Volume Footprint

Jan 24, 2022
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This indicator estimates a volume footprint using tick data. The script automatically separates a candle into equidistant intervals with a width obtained from the average true range or a user-given width.

Trendlines with Breaks

Trendlines with Breaks

Jan 17, 2022
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To complete our previous work on breakouts with pivot point-based levels, we introduce an indicator returning pivot point based trendlines with highlighted breakouts. Users can control the steepness of the trendlines as well as their slope calculation method.

RSI Multi Length

RSI Multi Length

Jan 10, 2022
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The following indicator aims to return information over RSIs using multiple periods, including the percentage of RSIs of different periods being overbought/oversold, as well as the average between these multiple RSIs.

Double Tops & Bottoms - Advanced Analysis

Double Tops & Bottoms - Advanced Analysis

Jan 5, 2022
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Double tops/bottoms are relatively frequent and easy formations to identify and use. In this post, we provide a description of each pattern, implications, respective measure rule, as well as the variations described by Bulkowski.

VWAP Bands - Event Based

VWAP Bands - Event Based

Jan 3, 2022
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This indicator returns VWAP bands with a degree of smoothness resetting based on various user-selected events. The bands are constructed using a VWAP based naive standard deviation.

Harmonic Pattern Detection

Harmonic Pattern Detection

Dec 27, 2021
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The following tool aims to automatically categorize which XABCD harmonic pattern is highlighted by the user and to alert when the price reaches the PRZ or D point.

Fibonacci Toolkit

Fibonacci Toolkit

Nov 15, 2021
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This toolkit aims to display multiple Fibonacci drawing tools including retracements, arcs, circles, fans, timezones and spirals.

Head & Shoulders Pattern - Advanced Analysis

Head & Shoulders Pattern - Advanced Analysis

Nov 10, 2021
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In this series about chart patterns we previously discussed narrowing wedges patterns, explaining their identification rules, the measure rule associated with them, and various observations.

Circular Barplot - Oscillators Sentiment

Circular Barplot - Oscillators Sentiment

Nov 8, 2021
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This indicator is an implementation of a circular barplot aiming to return the market sentiment given by multiple normalized oscillators. These include the relative strength index ( RSI ), Stochastic %K (%K), Linear Correlation Oscillator (ROSC), William Percent Range (WPR), Percent Rank (%R), and money flow index ( MFI ).

Moon Phases Strategy

Moon Phases Strategy

Oct 29, 2021
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Trading moon phases has become quite popular among traders, believing that there exists a relationship between moon phases and market movements. This strategy is based on an estimate of moon phases with the possibility to use different methods to determine long/short positions based on moon phases .

Bat Harmonic Pattern - Advanced Analysis

Bat Harmonic Pattern - Advanced Analysis

Oct 28, 2021
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In this series of chart patterns, we have taken a look at the more traditional ones. However, we have not yet discussed harmonic patterns .

Linear Regression Histogram

Linear Regression Histogram

Oct 26, 2021
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This indicator is inspired by traditional statistical histograms. It will return the number of occurrences of price falling within each interval (bins) of the linear regression channel. This can be useful to highlight zones of interest within a trend.

Narrowing Wedges - Advanced Analysis

Narrowing Wedges - Advanced Analysis

Oct 20, 2021
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In the last post in this series on chart patterns, we described the characteristics, rules, and causes of broadening wedges patterns (if you haven't seen it, see the related ideas below).

Nadaraya-Watson Envelope

Nadaraya-Watson Envelope

Oct 18, 2021
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Here we have created an envelope indicator based on kernel smoothing with integrated alerts from crosses between the price and envelope extremities. Unlike the Nadaraya-Watson Estimator, this indicator follows a contrarian methodology.

A Deep Dive Into Moving Averages

A Deep Dive Into Moving Averages

Oct 13, 2021
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Moving averages are inherent in the world of technical analysis and are present in the core calculations of many technical indicators. In this post, we take a deep dive into 3 types of moving averages used every day by traders: the Simple Moving Average ( SMA ), Exponential Moving Average ( EMA ) and the Weighted Moving Average ( WMA ).

Linear Regression Fan

Linear Regression Fan

Oct 11, 2021
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This indicator displays a fan using a linear regression fit to the price as a base. All lines are equidistant and are drawn from the first point of the linear regression to the most recent point of the linear regression plus the root-mean-square deviation (RMSD) multiplied by a certain factor.

HOW-TO: Automatic Pattern Detection in TradingView

HOW-TO: Automatic Pattern Detection in TradingView

Oct 8, 2021
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Chart patterns are governed by precise identification guidelines and it is important to effectively recognize the presence of a specific pattern. Since this recognition process can be subjective, we designed a robust and efficient algorithm for the detection of traditional chart patterns, saving users valuable time.

The ECHO Forecast

The ECHO Forecast

Oct 4, 2021
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This indicator uses a simple time series forecasting method derived from the similarity between recent prices and similar/dissimilar historical prices. We named this method "ECHO".

Broadening Wedges - Advanced Analysis

Broadening Wedges - Advanced Analysis

Sep 29, 2021
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In this post, we perform an advanced analysis of broadening wedges patterns. We provide a description of each pattern and its implications. We also review the literature in order to find their deterministic cause.

Peak Activity Levels

Peak Activity Levels

Sep 27, 2021
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The Peak Activity Levels indicator displays support and resistance levels from prices accompanied by significant volume . The indicator includes a histogram returning the frequency of closing prices falling between two parallel levels, each bin shows the number of bullish candles within the levels.

Triangle Patterns - Advanced Analysis

Triangle Patterns - Advanced Analysis

Sep 22, 2021
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Triangle patterns form a part of the most studied patterns by technical analysts and have been well documented over the years, with some even applied to climate time-series data (1). In this post, we perform an analysis of ascending, descending, and symmetrical triangles patterns.

Multi-Length Stochastic Average

Multi-Length Stochastic Average

Sep 20, 2021
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This indicator returns the average of stochastic oscillators with periods ranging from 4 to length. This allows for a slightly more reactive oscillator as well as having information regarding the position of the price relative to rolling maximums/minimums of different periods. We introduce settings that allow for pre and post-smoothing, with selectable smoothing methods and periods for both steps.

Risk Management Tool

Risk Management Tool

Sep 14, 2021
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Good money management is one of the fundamental pillars of successful trading. With this indicator, we propose a simple way to manage trading positions.

Nadaraya-Watson Estimator

Nadaraya-Watson Estimator

Aug 24, 2021
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The following tool smooths the price data using the Nadaraya-Watson estimator, a simple Kernel regression method. We make use of the Gaussian kernel as a weighting function.

Pivot High/Low Analysis & Forecast

Pivot High/Low Analysis & Forecast

Jul 26, 2021
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This indicator returns pivot point high/lows alongside the percentage change between one pivot and the previous one (Δ%) and the distance between the same type of pivots in bars (Δt). The indicator also returns an estimate of the future time position of the pivot points.

Zig Zag Channels

Zig Zag Channels

Jul 5, 2021
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The Zig Zag indicator is a useful tool when it comes to visualizing past underlying trends in the price and can make the process of using drawing tools easier.

Normalized Oscillators Spider Chart

Normalized Oscillators Spider Chart

Jun 28, 2021
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Today's new indicator a spider chart overlaid on the user’s current chart allowing the visualization of information given by various normalized oscillators.

Trader Profile — Asking Yourself The Right Questions

Trader Profile — Asking Yourself The Right Questions

Dec 22, 2020
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The first thing most traders will have to do is build a portfolio, this process is more complex than just choosing what assets to trade, and in order to build a good portfolio you will need to find your trader profile.

Rainbow Adaptive Rsi

Rainbow Adaptive Rsi

Dec 17, 2020
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The following oscillator uses an adaptive moving average as input for another RSI oscillator and aims to provide a way to minimize the impact of retracements over the oscillator output without introducing significant lag.

What Are The Best Indicator Settings & Timeframes?

What Are The Best Indicator Settings & Timeframes?

Dec 6, 2020
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Timeframes and technical indicator settings are ubiquitous concepts to technical analysts, two things that they will have to interact with at some point in point.

Trend Regularity Adaptive Moving Average

Trend Regularity Adaptive Moving Average

Dec 1, 2020
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The following moving average adapts to the average number of highest high/lowest low made over a specific period, thus adapting to trend strength. Interesting results can be obtained when using the moving average in a MA crossover system or as a trailing support/resistance.

ArcTan Oscillator — A New Indicator For Technical Analysis

ArcTan Oscillator — A New Indicator For Technical Analysis

Oct 8, 2020
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The following indicator is a normalized oscillator making use of the arc tangent sigmoid function (ArcTan), this allows to “squarify” the output result, thus visually filtering out certain variations originally present in the oscillator.

SMA Directional Matrix - A New Indicator For Technical Analysis

SMA Directional Matrix - A New Indicator For Technical Analysis

Sep 9, 2020
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Today we present a new technical indicator that displays a simple & elegant panel showing the direction of simple moving averages with periods in a user-selected range.